Section 41(2) - Balancing Charge

Income Tax - Profit and Gains of Business or Profession - 64 - SEC - 41(2): BALANCING CHARGE Step I Find out the written down value of the depreciable asset on the first day of the previous year in which such asset is sold, discarded, demolished or d .....

treatment of such surplus is as follows: So much of the surplus which is equal to the amount of depreciation already claimed, is taxable as balancing charge u/s 41(2) as business income. The remaining surplus (if any) is taxable under the head Capita .....